Ready to stake your claim as a serious buyer? A mortgage in principle is the perfect first step towards securing your ideal home.
Getting a mortgage in principle, also known as an agreement in principle, an MIP, or an AIP, could be the key to kickstarting your application process. Although this all-important document doesn’t guarantee you a mortgage, it can certainly help give all parties peace of mind at every step of the process – working from the very beginning to establish an accurate budget, direct your property search, and improve your chances of approval.
A mortgage in principle is a document composed by a lender or broker for a prospective buyer – typically prior to the application process. It’s used to give an accurate estimate of how much you’ll be able to borrow with a mortgage – but isn’t an absolute guarantee.
Here’s how it works. Your chosen MIP provider will usually work to assess your financial details – ultimately arriving at the maximum figure themselves or a lender would theoretically be willing to provide. At the end of your appointment, you’ll be given a letter or certificate with the number calculated – ready to submit alongside applications and offers. Depending on the level of detail needed, this can take as little as a few minutes!
A mortgage in principle can help act as a guide from search all the way through to sales negotiations – helping establish an accurate budget, guide your decisions, and, most importantly, prove to your estate agent or seller that you’re a serious buyer.
In order to secure your mortgage in principle, you’ll need to provide your chosen lender or broker with a number of personal and financial details, typically including (but not limited to):
In addition to the above, you’ll most likely need to undergo a soft credit check – providing an overview of your credit history and debt. In some cases requiring more information, a hard credit check may be performed. Your advisor will always inform you of the inquires they carry out and get permission where relevant.
Our leading mortgage brokers are always available to offer independent, fully-tailored mortgage advice in plain, understandable terms, and at no extra cost – helping you kickstart your home buying journey whilst avoiding common mistakes and expensive pitfalls. Whether you’re looking for advice on MIPs, or are ready to start your mortgage application, we’ll get you on the right track.
Unlike the industry ‘big boys’, Fees Free Mortgages is motivated by clients – not commission.
We’ll work hard to find and apply for the best mortgage deal for your individual circumstances; no strings attached. Best of all, our comprehensive services are completely fees free!
Most mortgage firms and brokers charge an arrangement fee upfront, or on completion of your application. We’re different. Our team work on an entirely fees-free basis, meaning you’ll never be charged for mortgage advice, or for arrangement - regardless of your circumstances.
We believe that the best brokers provide a personal touch - not outsourced calls and automated responses. With Fees Free Mortgages, you’ll be assigned an in-house personal broker and case manager, both of whom will be by your side throughout the process.
With thousands of mortgage options available on the market, it’s highly unlikely that you’ll get the best deal from your bank. On the other hand, whole of market brokers without lender ties are able to offer a wide range of deals, accompanied by unbiased mortgage advice.
Selecting a mortgage broker is a big step in one of the most significant financial decisions of your life - meaning it’s vital to ensure your final choice is trustworthy. Fees Free Mortgages are directly authorised by the FCA and are and fully accountable for the mortgage advice we give.
We promise to handle all the hard work, meaning you can sit back and relax until your mortgage completes, whilst your dedicated broker and case manager keep you in the loop. With us, you’ll always be fully informed on the stage and details of your application.
We believe everyone should have access to free, unbiased mortgage advice and brokerage. That’s why we’re proud to have developed flexible services benefitting clients from Cornwall to Carlisle and beyond. We’ll work to find your perfect mortgage, whether in-person in our flagship office, through one of our UK representatives, or over video call.
Discover our clients’ mortgage success stories.
I had so many questions and unknowns about buying my first home but none of them were too silly for Martin to answer. He helped me with finding the mortgage lender that suited me and did all the paperwork upfront, so to make everything run smoothly later on. He advised me with insurance and gave me me guidance and updates every step of the way. For me, Martin made buying my first home an exciting experience, not a stressful one and I would recommend him every time. Thank you.
First Time Buyer Mortgage
5.0
Martin Bright has been exceptional throughout a long and convoluted process. After three attempts at securing a house (and three mortgage searches), Martin was patient and professional, always happy to help and always finding a better deal than I thought possible. He explains things clearly and puts forward his thoughts and justifications in a very considered way. I have a 5yr fix at 0.9%. Which beggars belief really! Fantastic outcome, brilliant service and a thoroughly nice chap all round. Wouldn’t hesitate to recommend, and I already have done to a couple of friends looking to secure their own mortgages.
First Time Buyer Mortgage
5.0
5.0
I had so many questions and unknowns about buying my first home but none of them were too silly for Martin to answer. He helped me with finding the mortgage lender that suited me and did all the paperwork upfront, so to make everything run smoothly later on. He advised me with insurance and gave me me guidance and updates every step of the way. For me, Martin made buying my first home an exciting experience, not a stressful one and I would recommend him every time. Thank you.
First Time Buyer Mortgage
5.0
Martin Bright has been exceptional throughout a long and convoluted process. After three attempts at securing a house (and three mortgage searches), Martin was patient and professional, always happy to help and always finding a better deal than I thought possible. He explains things clearly and puts forward his thoughts and justifications in a very considered way. I have a 5yr fix at 0.9%. Which beggars belief really! Fantastic outcome, brilliant service and a thoroughly nice chap all round. Wouldn’t hesitate to recommend, and I already have done to a couple of friends looking to secure their own mortgages.
First Time Buyer Mortgage
5.0
Martin and his team were always quick to respond from mortgage application through to completion. He provided valuable advice and insight throughout, especially during the economic downturn and rapid rises with interest rates, and secured us a great deal with a lightning fast turnaround. Also, Adelle made obtaining Life and Financial Protection insurance super easy – allowing us time to look through the deals she prepared and was always willing to explain complex or unfamiliar terms to us. When we end up moving house in the future – I’m sure I’ll be giving Fees Free Mortgages a call.
Free Mortgage Advice
5.0
For anyone buying a new home, looking to re-mortgage or interested in setting up life cover – then Martin is absolutely your man. My wife and I have been using Martin for the past 4-years for our mortgages, personal and business life cover, and I would never go else where. Martin offers a very personal and professional service, he is extremely knowledgeable, honest and consistent, and is always looking for the best option for his client. I would highly recommend, great guy.
Self Employed Mortgage
Martin and his team were always quick to respond from mortgage application through to completion. He provided valuable advice and insight throughout, especially during the economic downturn and rapid rises with interest rates, and secured us a great deal with a lightning fast turnaround. Also, Adelle made obtaining Life and Financial Protection insurance super easy – allowing us time to look through the deals she prepared and was always willing to explain complex or unfamiliar terms to us. When we end up moving house in the future – I’m sure I’ll be giving Fees Free Mortgages a call.
Free Mortgage Advice
5.0
For anyone buying a new home, looking to re-mortgage or interested in setting up life cover – then Martin is absolutely your man. My wife and I have been using Martin for the past 4-years for our mortgages, personal and business life cover, and I would never go else where. Martin offers a very personal and professional service, he is extremely knowledgeable, honest and consistent, and is always looking for the best option for his client. I would highly recommend, great guy.
Self Employed Mortgage
5.0
Our carefully crafted range of mortgage offerings is far from ‘one size fits all’. From first time buyers to remortgages, our selection of whole of market, independent mortgage services is designed to meet the unique needs of anyone, anywhere.
Purchasing your first house should be fun, not frightening; and we’re here to help.
Learn MoreGet it right first time, for free. Avoid common pitfalls, and save money.
Learn MoreDiscover the advantages of financial flexibility with our dedicated remortgaging service.
Learn MoreUnlock the power of buy-to-let investment with the help of our mortgage experts and their fees-free assistance.
Learn MoreFind and secure a mortgage deal tailored to your circumstances, whether you're a contactor, a director or self-employed.
Learn MoreOur experienced new build mortgage brokers are the perfect partner for those looking to secure an off-plan option, big or small.
Learn MoreConvert and rent out your existing property, whilst taking out a standard mortgage on your new one.
Learn More
A mortgage in principle is an informed guideline as to how much you’ll be able to borrow and is more reliable than an online mortgage calculator – but is not a guarantee, and is not a mortgage offer. Though MIPs, also known as AIPs, are typically compiled using a substantial amount of information and data, mortgage applications themselves are subject to a number of deeper background checks regarding finance, credit history, and the property itself. A lender may decline an application or withdraw a MIP for a number of reasons including but not limited to:
How long your mortgage in principle lasts depends on the lender or MIP provider. This document functions as an informed guideline as to how much you’ll be able to borrow and can be used to help guide your property search, convince sellers of your position as a serious buyer, and secure a mortgage. A MIP is typically valid for between 30 and 90 days after being created. In some cases, it may be possible to renew the agreement prior to the end of its specified period of validity, but most of the time, new terms must be arranged after its expiration.
Whilst you don’t necessarily need a mortgage in principle to make an offer on a home, they can be an excellent tool for negotiation – and can put you a step ahead of your competition in more dense markets. Presenting sellers with a MIP alongside your offer can help demonstrate your seriousness as a prospective buyer and validate your borrowing potential, instilling confidence in sellers, and bringing you one step closer to securing your new home.
Are you in need of a mortgage in principle? Our team of industry-leading advisors are ready to assist in compiling a strong document on your behalf. To start the process, fill in the contact form above, or reach out to your local advisor.
A request for a mortgage in principle can be declined for a multitude of reasons. These vary slightly from lender to lender, but generally include:
If you’ve been rejected by one provider, that doesn’t mean you’ll be rejected by others. Our experts suggest speaking to an independent mortgage broker like us to ensure you’re on the right track.
A mortgage in principle, also known as an MIP, agreement in principle, approval in principle, decision in principle, or AIP is a written document composed as an indication of how much money a prospective buyer will be able to borrow when purchasing a house.
MIPs are most commonly provided by banks and lenders, but may also be provided by some mortgage brokers. In order to determine a buyer’s borrowing potential, a MIP provider will usually work to compile a basic overview of their financial circumstances – ultimately arriving at the maximum figure they would theoretically be willing to provide.
This document, though more of an informed guideline than a guarantee, can help hugely in the process of searching for and securing a new home – helping establish an accurate budget, guide your decisions, and, most importantly, prove to your estate agent or seller that you’re a serious buyer.
A mortgage in principle can be referred to as many different terms. The most common include ‘MIP, AIP, agreement in principle, decision in principle, and approval in principle.
All of the above refer to a written document produced by a bank, lender, or mortgage broker designed to offer an informed guideline as to how much a prospective buyer will be able to borrow when purchasing a house. They can be used to establish a budget when househunting, to prove your position as a serious buyer, and to edge out competition when putting in offers on properties.
Are you in need of a mortgage in principle? Our team of industry-leading advisors are ready to assist in compiling a strong document on your behalf. To start the process, fill in the contact form above, or reach out to your local advisor.
Whilst getting a MIP is an excellent step towards securing your first or next property, it’s not a guarantee that your application will be accepted, and isn’t a mortgage offer. This means that even with a MIP, your chosen lender is still within their rights to decline your application should you not or no longer meet their requirements. Causes of this may include significant financial changes, the inclusion of fraudulent information on the MIP or application, a career change, or the discovery of a CCJ, bad credit, or debt.
In addition to the above, buyers should keep in mind that mortgage in principle documents are only valid for a set period of time – typically between 30 and 9 days. If you’re unable to find a property during this time, it’ll expire – meaning you’ll need to renew it.
Applying for or getting a mortgage in principle will not affect your credit score. This first step is backed by a soft credit check, meaning that unlike with a full mortgage application, only the essential details are checked. Your full credit history will not be accessed during the application period, and no records will be left on your file. Your credit score will not be impacted.
Are you in need of a mortgage in principle? Our team of industry-leading advisors are ready to assist in compiling a strong document on your behalf. To start the process, fill in the contact form above, or reach out to your local advisor.
An AIP is not a mortgage guarantee. This simple document is composed of information retrieved during a soft credit check – and is, therefore, more of an informed guideline as to borrowing potential rather than a full review of the buyer’s credit history. This doesn’t mean that an agreement in principle is not a valuable tool – in fact, they’re used by buyers as a tool for guidance from establishing a budget for their home search to putting in an offer with sellers.
Are you unsure as to whether you’ll be able to afford a mortgage? Fees Free Mortgages’ expert mortgage advisors can help you explore and understand your options at no extra cost. Book in for a free consultation appointment with us using the form above, or by visiting us in branch.
Whether or not you’ll be able to get an AIP depends on your unique circumstances. At Fees Free Mortgages, we’re often able to complete agreement in principle documents for clients with money problems in their past – but every situation is different. Those with bankruptcy orders issued in the last 6 years, CCJs, a record of home repossession or mortgage rejection, or a short employment history often face additional roadblocks in their journey to securing a MIP and mortgage. If you fall into this category, we’d recommend booking a free consultation with one of our advisors to discuss your needs, our requirements, and your credit history. Don’t worry – any checks we may perform at this point are soft, and won’t impact your credit score. We’ll always get your permission first.
